Shadow Chancellor pledges to support oil and gas

Shadow Chancellor John McDonnell yesterday said he would produce a tax regime that supports the oil and gas industry if Labour wins power at a General Election.

On a visit to Scotland, Mr McDonnell declared an incoming Labour Government would use a £70billion fund, delivered to Scotland over 10 years, to “revive” Scottish industry.

He said it would be up to Scottish Labour leader Richard Leonard to determine industrial strategy north of the border, but argued the fund ensured there would be enough cash to support the off-shore industry.

Speaking in Glasgow, Mr McDonnell said: “Richard Leonard and his team will lay out the detail of all his plans and we will make sure they have got the resources to invest for the long term.

“They will determine their industrial strategy which they are doing, but it will link up with our own. We will make sure that they have got the resources that they have been starved of for the last period.

“The investment programme around energy will be developed by Richard himself.”

On Westminster taxes, he added: “In terms of taxation, what we have done is everything we can to support the industry and we will continue to do so.”

Earlier this year, UK Labour leader Jeremy Corbyn signalled he could order a review of oil and gas taxes if he gains the keys to Downing Street.